The Community needs to improve the quality of employment and digitize

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pauljoy1548
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Joined: Tue Dec 12, 2023 10:22 am

The Community needs to improve the quality of employment and digitize

Post by pauljoy1548 »

Improving the quality of the labor market and digitizing the economy continue to be the two great challenges of the Community. Although the unemployment rate will drop to 12.6% in 2019, according to the forecasts of BBVA Research and the National Institute of Statistics ( INE ), unemployment in the Valencian economy will still be at levels higher than the pre-crisis minimum, when it was around the 8%. However, the labor market will need something more to get back on track: measures that increase productivity and improve the quality of employment.

On the other hand, digitalization continues to be a burden, a pending issue to Email Data face the difficulties that some Valencian companies are going through, such as the lack of business density or access to new markets, that is, the internationalization of the business fabric.

According to the latest BBVA Research report , if the Valencian Community increased the level of digitalization to the national average, the region's productivity would increase by 3.9% and could reach the pace of the capital, which registers a rate of 14.5 %.

Furthermore, these two pending tasks will have to be resolved in a scenario of greater uncertainty. Firstly, the lower growth of the Economic Monetary Union (EMU), which has already been reflected in the poor result of goods exports during the first half of 2018.

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Secondly, the increase in the price of oil, derived from supply restrictions, could generate a strong impact on the economy. Thirdly, although protectionism is almost imperceptible in Spain, it could reduce investment expectations.

Finally, political fragmentation and short-term uncertainty over fiscal policy, along with other pending reforms, which should be addressed in 2019, will not make things easy either.
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